INITIATING AND FUNDING R&D IGRC 2014 Copenhagen September 17-19 Brad Douville, Vice-President, Westport 1
Driving a Shift to Natural Gas as a Transportation Fuel» Energy transitions are enormously difficult» Natural gas is emerging as the first significant new transportation fuel in over half a century ENERGY TECHNOLOGY TRANSPORTATION Gas exploration & production Distribution & utilities Fuel station owners/operators Renewable fuels Market-spanning experience Expansive IP portfolio Capital light business models Engine & vehicle OEMs Fleet operators Shippers, transportation users Consumers 2
We Have Seen A Complete Market Shift Before. Will It Happen Again?» In 1950 diesel powered trucks cost more and were heavier than gasoline trucks, yet the market shifted 100% to diesel within 2 decades. Why?» A new paradigm of high productivity with low operating costs meant fleets needed to make the change or go out of business.» The same 100% shift happened a decade earlier in locomotives; steam to diesel. 100% 75% New sales of Class 8 diesel trucks, USA 1,2 Share 50% 25% New sales of natural gas refuse trucks, USA 2 0% 1950 1960 1970 1980 1990 2000 2010 2020 2030 2040 1. MacKay & Co., & Wards Auto Group, a division of Penton Media, Inc. 2. Westport 3
Money Raised in Capital Markets» Westport translates unique IP and expertise into an entire spectrum of technologies and products Intellectual Property & Investment Expertise Design engineering OEM process alignment Supply chain management Testing and analysis Precision manufacturing Vehicle integration Technologies / Products Combustion Fuel Storage & Delivery Components & Fuel Systems Electronics 4
High Pressure Direct Injection (HPDI) Westport s Founding Technology» Common-rail style injector two fuels through one injector» Replaces diesel injector limited engine modifications» Performance and efficiency of diesel, with cleanliness of natural gas. Diesel HPDI 5
Strong Intellectual Property Heritage Positions Westport as the Global Leader» Originated at University of British Columbia» Strong global patent portfolio pivotal to market leading position with OEMs» Worldwide, Westport and its affiliates have filed over 825 patent applications Westport Patent Portfolio Technology Breakdown Combustion 41% Fuel Storage & Delivery 31% Westport CAT Ford GE Siemens Toyota Honda GM Cummins Bosch Top 10 Companies with Natural Gas Engine Related Patents* 102 99 85 82 65 62 50 154 201 327 Electronics 7% Component s & Fuel Systems 21% * As of February 24, 2014 and based on the patent search results of publicly available data within the International Patent Classification F02, meeting the search term criteria: one of ("engine" or "combustion" or "injector" or "injection valve") and ("natural gas" or "methane" or "gaseous fuel") and in the claims, not ("fuel cell" or "turbine"). This chart includes issued or granted patents from: Argentina, Australia, Austria, Belgium, Brazil, Bulgaria, Canada, Ceuta and Melilla, China, Czech Republic, Denmark, European Patent Office Grants, Finland, France, Georgia, Germany, Greece, Hong Kong, Hungary, India, Ireland, Italy, Japan, Latvia, Malaysia, Mexico, Moldova, Monaco, Netherlands, OAPI grants, Philippines, Poland, Portugal, Romania, Russian Federation, Serbia, Singapore, Slovakia, Slovenia, South Africa, South Korea, Spain, Sweden, Switzerland, Taiwan, Tajikistan, Turkey, UK, Ukraine, USA, USSR, Yugoslavia, and pending published patent applications from: Canada, China, the European Patent Office, USA, and the World Intellectual Property Office. 6
Westport Technology & Applications Heavy-Duty & High Horsepower Applications Advanced Dual Fuel Vehicles Bi-Fuel Vehicles Medium-Duty Applications Spark Ignited Direct Injection 7
From R&D to Revenue Internally Fund» Disruptive technologies and comprehensive product portfolio to generate multiple revenue streams for long-term growth Expertise Technologies / Products Combustion Westport HPDI Spark Ignition Dual fuel Spark Ignited Direct Injection Fuel Storage & Delivery ice PACK LNG Tank System Westport LNG Tender JumpStart Mobile Refueling Components & Fuel Systems CNG & LNG components WiNG Power System Bi-Fuel Volvo Cars Electronics Engine control units LNG tank actuator Capacitance sensor Accelerometer Revenue Products Licensing Service Parts 8
» Pure-play global leader for natural gas as a transportation fuel Thank you. westport.com 9